When your home is damaged, you might breathe a sigh of relief knowing that you have homeowner’s insurance. Yet, all too often claims filed under these policies are denied. If this happens to you, you can be left with thousands of dollars in needed repairs. You might not have the funds to pay for those repairs, and even if you do, the exorbitant cost of making your home whole again can eat away at savings that you had saved for other purposes.
The sad reality is that homeowner’s policy claims are denied all the time. But don’t let that deter you from seeking the protection that you deserve. Instead, you need to ready yourself for the process ahead so that you know what to expect moving forward and how to protect your interests. One of the first steps is to understand why these claims are denied in the first place.
Top reasons why homeowner’s insurance claims are denied
When you file a homeowner’s claim, there’s a fair chance that your claim will be denied. Insurance companies have several justifications they can rely upon in issuing denials, including each of the following:
- Your circumstances are excluded under your policy: Each homeowner’s policy is different. You should review the terms of yours to see if the circumstances that damaged your home are covered. If they can figure out an argument that your circumstances are excluded under the terms of your policy, your insurance company will make it.
- Missed premium: Any late or missed premium payments will give the insurance company reason to deny your claim.
- Existing damage: If your home had pre-existing damage, then the insurance company might try to argue that your claim seeks compensation for damage that was caused prior to the implementation of your coverage or at a time when you simply failed to file a claim and have therefore missed the window to be compensated for that harm. Be ready to prove how the claimed damage was caused and how your claim is timely filed.
- Lack of evidence: When you file your homeowner’s claim, you need to present evidence that demonstrates how the damage was caused, when it was caused and the extent of the repairs needed. So, you’ll need plenty of photographs, videos, witness statements about the cause and extent of the damage and receipts and estimates related to damage repairs.
- Claimed negligence: If the insurance company can argue that your home’s damage was caused by your own negligence, then they’ll do so to deny your claim. That’s why it’s crucial that you discover the true cause of your damage and document it accordingly. This may even require you to consult with an expert who can provide you with a strong opinion as to the cause of your damage.
- The needed repairs exceed your coverage limits: Home repairs can be costly. If the cost of your repairs exceed the allowable payment amount under your policy, then you could be denied the compensation you need. Understand what your policy limits are, how to stretch them to suit your needs and what you can do to minimize your repair costs.
What should you do if your homeowner’s insurance claim is denied despite your efforts?
Don’t be overly disheartened if your homeowner’s insurance claim is denied. You can still try to work with the insurance company to appeal your denial. This is sometimes a successful way to recover needed compensation. If you’re unsuccessful here, then you may need to take the matter to court to secure what you deserve. This can be a highly contentious process, though, which is why it’s crucial that you have knowledge and the ability to fight considering the law and its application to your unique set of facts.
